Pay Equity

On October 23, 2025, Germany’s Federal Labor Court (Das Bundesarbeitsgericht (BAG)) held that female employees need not be content with comparing their pay with the median pay level of comparable male colleagues. In the case (Ref. No.: 8 AZR 300/24), the court held that gender-based discrimination is to be presumed where a woman earns less than a comparable male colleague, even if that colleague is a top earner. If the employer fails to rebut the presumption of gender-based pay discrimination, it must pay the remuneration earned by the male comparator included in the assessment. The full text of the decision has not yet been published. We will provide an update once the reasons for judgment are available.